RESEARCH AL ReseaRch JOURNaL The effect of Organization...

volume 6 no. 2 JulY - DeCemBeR 2017 69

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The effect of Organization Development Interventions (ODI) on Transformational Leadership to enhance employee engagement and employee creativity: an action Research in Focal college

PATTARADA RUNGRUANGASSUMPTION UNIVERSITYE-mail: [email protected]

abstract Studies reveal that it is truly important that the leadership is one of the main factors that generate

competitive advantages for organization to survival and sustain in fast changing times. This reasearch

investigated the effects of organization development interventions (ODI) on transformational leadership

to enhance employee engagement and employee creativity among top and middle level leaders at the

focal college. The organization development interventions (ODI) mainly used processes such as: creating

awareness of the organization system, raising consciousness of organizational culture in positive constructive

design for change and utilizing Whole Brain Literacy (WBL) with Appreciative Inquiry (AI) for transformative

learning and change to shift mindset leading to transformational leadership. These processes were within

an action research design frame. The ODI activities were conducted with top and middle level leaders.

Hypotheses were tested using data from an attitude survey questionnaire conducted with 26 leaders at

top and middle level management and 58 respondents at subordinate level at pre-ODI and post-ODI

stage. The questionnaire was designed to gather data on Employee Engagement (in terms of extra effort,

commitment and job satisfaction), and on employee creativity (in terms of problem solving, creativity

self-efficacy and suggest useful idea). Quantitative data were analyzed by sample t-test, correlation, and

ANOVA, while content analysis was used for qualitative data.

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The study has indicated an improved level of transformational leadership, employee engagement

and employee creativity at post-ODI. This indicates that ODI significantly create effects on these variables.

There is a positive relationship between transformational leadership, employee engagement and employee

creativity. Recommendations on the effect of transformational leadership on employee engagement and

employee creativity can be shared with other private higher education institutes. In addition, the key

results of the study are the best practices of focalcollege on leadership style which the higher education

institutions and refer to as a model.

Keywords: Organization Development Intervention (ODI), Leadership, Transformational Leadership,

Employee Engagement, Employee Creativity

IntroductionNow, people in the world of work and relations

live in an era where the pace and scope of change

are uncertain. It is inevitable that individuals,

groups and organizations especially those in the

educational sector are affected and influenced by

the massive changes in information technology,

communication pace and explosion/implosion of

knowledge. A commercial business school cannot

remain in the traditional mode of teaching and

learning under a conventional mindset of leadership.

What is historically known about commercial

business has been completely changing. Leaders

who do not see these changes or fail to rapidly

adapt to them would be left behind in the highly

competitive environment (Manning, 2004).Taking

a close look at impacts of overall change, similar

to other business sectors, education industry is

confronted with the same change and demand the

study of Ford (1996) consistently supported that

education providers face the challenges of building

educational system which is equipped to meet

society needs in the 21st century. Therefore, he

strongly emphasizes the urgent need to education

providers to response positively and rapidly to

the change. Furthermore, the study of Wilkenson,

Fourie, Stydom, van der Westhuizen and van

Tonder (2004) point out potential changes in the

next century including the significant increase on

economic knowledge and the newly introduced

communication and technology. They consistently

support that education industry needs to

adaptively change by reforming their mission and

better utilizing their intellectual resources in order

to meet challenges. Coaldrake and Stedman (1999)

suggested five areas of change that significantly

impact employee performance in education

environment; rapid growth within the industry,

the shift of financial source from government to

students, increasing interaction between knowledge

(researchers) and demand (users) for synthesis,

industrialization and its policy, and transformation

in information technology and transformation of

teaching and learning. These outlined changes have

fallen on the university system. Those universities

choose to remain in traditional form may be badly

out of balance and move forwardly to disequilibrium

stage (Clark, 1998) For those want to survive, the

fundamental change in thought processes about the

governance and management of the organization

are necessity (Ford, 1996). In other words,



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Ford emphasized the shift on paradigm which

commonly creates impacts on every aspect of

organization. One significant aspect that is affected

by this paradigm shift is the approach to

leadership. Studies consistently support that

leadership is the key to effective educational reform

(Bass, 1998a; Clark, 1998; Coaldrake& Stedman,

1999; Green & Fisher, 1991; Harker & Sharma, 2000),

but the appropriate leadership style to effectively

manage transformation and change is rarely

identified. Zeffane (1996) suggested that the

implementation of strategic transformation and

change would be achieved by blending of

empowered leaders with new technology and

improving business processes. This is made through

effective transformational leadership model.

To reassure the achievement on organizational

performance, the organization initiates talent

management pol icy including employee

engagement. Having engaged employees are

crucially important in a time where organizations

look to employees to take initiative and creative,

bring innovation to today needs. Transformational

leaders play a fundamental role in the organization.

They do more than just motivate employees but

enable them to fulfill basic needs but meaningful

in their activities. Consequently, transformational

leaders positively affect employee performance

by way of increased engagement and creativity

which, in turn, can have a determinant effect in

organizational performance (Stevens, 2010)

PurposesThe main purpose of this study is to determine

the impact of Organization Development Interventions

(ODI) on transformation leadership and its influence

on employee engagement and employee creativity.

hypotheses

Hypothesis 1Ho: There is no significant difference between

pre-ODI and post-ODI on Transformational

leadership.

Ha: There is a significant difference between

pre-ODI and post-ODI on transformational

leadership.

Hypothesis 2Ho: There is no significant difference between

pre-ODI and post-ODI on employee engagement.


pre-ODI and post-ODI on employee engagement.

Hypothesis 3Ho: There is no significant differencebetween

pre-ODI and post-ODI on employee creativity.


pre-ODI and post-ODI on employee creativity.

Hypothesis 4Ho: There is no significant relationship

between transformational leadership and

employee engagement.

Ha: There is a significant relationship


employee engagement.

Hypothesis 5Ho: There is no significant relationship


employee creativity.

Ha: There is a significant relationship





conceptual Framework with employee engagement and creativity. The

study would highly guide and assist in both long

term and short term development plans of the

organization. This study would help and improve

top management and middle management as well

as increase and change leadership behavior and in

order to, it would increase employee engagement

and employeecreativity to createhigh organization

performance and high innovationsolution

fororganization in the future.

The second, the top and middle management

are able to obtain the benefits from the study. Top

management and middle management would gain

and develop more useful and effective leadership

style as their thinking, leading, and empowering

subordinates for surviving and developing

organization with new view and create long term

growth of the organization. New leadership style

and perspective would create new dynamic,

innovation, and new idea to support and create

the plan of organization and connect with

subordinates. Moreover, the change and progress

would help management to more understanding

their subordinate limitation and concerns in the

work place in real situation and help them to

be able to create the solution, to lead and to

delivery more success and creative the organization

performance. From several reports say that

transformational leadership have impact to empower

and motivation their subordinates. (Jung and Sosik,

2002). The responsibility of management, management

must select and deselect if necessary and develop

their employees for success; create a motivation

and robust, open system in work place; and

encouraging or influenced employee to complete

the job. Employee engagement and empowerment

givesan organization to competitive advantage to

Figure1 The Figure 1 below is the conceptual framework of this research

Benefit of ResearchSeveral empirical studies have been carried

out on the concept of transformational leadership,

which concluded that transformational leadership

is considered to be a significant factor in providing

numerous benefits to an organization performance

and have a positive relation with employee

engagement and employee creativity.

Top management and middle management

would adapt their self of leadership behavior to

leading subordinate and organization. The effect of

this study and interventions include thefollowing:

The first , the organizat ion as focal

system benefits from the study on The Effect

of Organization Development Intervention (ODI)

on transformational leadership to enhance

employee engagement and employee creativity.

It is mainly focused on identifying the effective of

ODI on transformational leadership (management

team and knowledge provider) and to consider

the relationship of transformational leadership



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succeed in the business. (Piersol, 2007)

Anyways third, the customers or students

and society would get benefit from the change of

leadership, employee engagement, and employee

creativity in organization by getting new and better

of education program, plan, and good governor

from management team, better management and

flow from staff of college. The college would be

able to sustain and growth the college and create

or attract more student or other for enrollment

credit and non-credit program.

Four, this study would add new knowledge

for higher education business in Thailand because

there are limited published studies area on

transformational leadership relation to employee

engagement and employee creativity in top

management and middle management in private

higher education business in Thailand.

Fifth, the researcher would explore and

expand understanding of the business constraints

and change processes of management leadership

styles. In order to be able support the organization

to sustain, growth, and achieving organization

goal and create the better plan for our staff and

organization.

Research ProcessPresents the research design, methodology,

the ODI processes, tools and levels of analysis.

The researcher used quantitative methods to test

the hypotheses by using surveys of both pre-ODI

and post-ODI.In-depthInterview and observation

are qualitative method of data collection and the

most widely used technique in OD. Additionally,

ODI activities are examined.

The researcher to design and develop the

ODI process to effect the needed change in focal

college. This assertionwas supported by studies

earlier cited that the leadership behavior of the

leader in changing environment demonstrates the

transformational leadership where a leader closely

works with subordinates in order to identify needed

change, create a vision to guide the change through

inspiration, and using the change in association with

committed employee. However, from gathered

data and observations obtained at pre-ODI clearly

indicated such leadership styles relative to the

strategic concerns within focal college. One critical

concern was the lack of the most appropriate

competent transformational leaders at middle

and top management level. In addition, the

understanding how transformational leaders

influentially impact level of employee engagement

and employee creativity was rare.

This action research comprises 3 steps;

action planning, action taking and action evaluation

which were implemented in this study with the aim

to answer research questions and test research

hypotheses.

action Research Design The action research design in thisstudy was

in three phases. It was intended to compare the

pre-ODI and post ODI data on the variables whether

therewas a difference after intervention. The action

research approachwasappropriate for this study

since it allowed the creation of knowledge during

the interventional process, which could lead to the

desired outcome of the study. The three phaseswere

pre-organizational development intervention,

the OD intervention, and post-organizational

development intervention.



1.Pre Organization Development Intervention (ODI)

There were two primary purposes of this

stage. First, it was to assess and analyze the current

situation of focal collegepurposely to address

concerns of leadership, employee engagement and

employee creativity in relation to organizational

performance. Second, it was to set and create

intervention activities in order to implement them

through ODI process. The researcher employed

both qualitative and quantitative approaches. Data

collection tools were a questionnaire, in-depth

interview and observation by the researcher.

At pre-ODI, the assessments to participants

were conducted as follow:

1. In-depth interview, there were interview

questions to 6 participants from different six position

which were Officers, head of office, teacher, head

of department, dean of faculty, vice president.

2.There were two sets of questionnaire

2.1 Questionnaire on Multifactor Leadership

Questionnaire (MLQ 5X-Short): Leader form were

distributed to 26 participants from top and middle

management.

2.2 Questionnaire on measure level of

employee engagement and creativity were

distributed to 58 respondent from a subordinate

level that had direct report line to those 26

participants at top and middle management.

2. Organization Development Intervention (ODI)

This stage was to plan an action in order to

improve focal college concerns addressed from the

pre-ODI stage. The course of action was designed

after data gathering at the pre-ODI.

The objectives of developed activities were to

improve and develop behaviors and management

skills of leaders at Top and middle management

level in order to develop them the skills do

demonstrate the transformational leader’s behavior.

The length to execute interventions took six

months. Each set of objectives and activities were

formulated and carried out in Response to Issues.

There were5 stages of effective change

management used to undergo the OD change

Process. These steps started form the foundation

for managing change to sustain the momentum

of change in the organization. The steps below

providedinsight into how to manage change

effectively in focal college:

Step 1: Motivating change

This stage was requires attention to two

related tasks: creating readiness for change and

overcoming resistance to change.

The activity was a meeting and learning in

order to create a sense of urgency for change to

participants with Whole Brain Literacy (WBL) and

Appreciative Inquiry (AI) tools were chosen for this

step to participants and using invitation letter from

the president to get the attention to motivating change.

Step 2: Creating vision

Vision describes the core values and purpose

that guide the organization as well as an envisioned

future toward which change is directed. The vision

could energize commitment to change.

Transformationalleadership workshop was an

activity that gives the idea and basic information

of the transformational leadership and the way

of think and understands themselves with Whole

Brain Literacy (WBL) and Appreciative Inquiry (AI).

It was an activity in a role play that enable them

to understand more and feel comfortable with

new information and inspiration on the vision of



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focal college that could stir them more action in

real work place and could energize all situation

to change.

Step 3: Developing political support

Managing the political dynamics of change

includes activities that enjoin participation and

develop team spirit for political or broad base

support.

The ODI created the activity for sharing

experience of transformation leadership with

the group of top and middle management and

each group of subordinate. This was the way to

expanding and sharing more the information for

everyone and can be more practical to practice

how to lead with transformational leadership

and eliminate the barrier for being transformed

from before and after. The researcher would get

together all the top and middle management to

have a dialogic and interactive meeting to arrive

at common understanding as well as consensus

on the development initiatives.

Step 4: Managing Transition

Implementing and managing organizational

change involving the process of moving from the

existing organization state to the desired future

state.

The activities to mobilize the participants

and focal college as a whole to implement the

changes were coordinated and communicated

in a well-planned process. Activities included

focal college outing, which involved key people

and groups whose experience of the impact from

intervention was needed for change to occur and

formulating a strategy for gaining their support and

continuous the transition.

Step 5: Sustain momentum

Make the new culture strike and providing

resources for change, building a support system

for change agents, developing new competencies

and skills, reinforcing new behaviors, and staying

the course.

Activity for new coming leader would

be check point within paper evaluation for

transformation leadership or continue communication

with human resource.

Continuous communication and sharing

internal best practices is a good way to improve

top and middle management performance by

replicating successes throughout an organization.

Initiatives that promote focus on what top and

middle management are doing right for the focal

college.

Develop and create the structure of organization

that supports the new style of leadership.

3.Post Organization Development Intervention (ODI)

The same qualitative and quantitative

approaches at pre-ODI were used purposely

to assess data of interrelationship between

transformational leadership and the level of

The Figure 2 below is the summary “three phases” as objective and activity of ODI



employee engagement and employee creativity at

focal college. Also, this was to compare the level

of employee engagement and employee creativity

during pre and post ODI. In addition, this was

to determine the effectiveness of interventions

between pre-ODI and post-ODI.

Population and sampleThe selected participants consisted of two

group of management in top and middle level

of management while the respondents were the

subordinate employees who reported to executive

management. First group consisted of top and

middle management group of 26 managements

and 1 observer. The management team has two

levels as the top level included president, vice

president, assisted president, dean, and deputy

dean, while middle management included head

of department and chief of office. All participants

were at work and on deck remaining in their current

position for more than 6 months to ensure the

management’ leadership perception to the study.

While, the respondents were 58 subordinates who

are under the supervision of and were to report

to the Top and Middle management in this study.

The respondents were asked to answer the survey

questionnaire before (pre-ODI) and after interven-

tion (post-ODI).

InstrumentsThe researcher used both qualitative and

quantitative research methods to collect and

analysis data in both pre and post-intervention

stages of this study. The questionnaires are used for

data collection in both the pre-ODI and post-ODI

stages. In order to avoid errors in the data collection,

the questionnaires were testing of reliability result

(Cronbach Alpha) and translated into the Thai

language for participant and respondent. Some

of the questionnaires as interventions evaluation

form were in Thai while the questionnaires created

for this study were reviewed by peers and others

professionals. The qualitative research were used

for data collection of sharing the theoretical

assumptions and assessed the information of

the interpretative and perception of individual in

organization.

Data analysis The summary of findings on transformational

leadership (Individualized consideration, Intellectual

stimulation, Inspirational motivation, and Idealized

Influence), employee engagement (extra effort,

commitment, and job satisfaction) and employee

creativity (problem solving, creativity self-efficacy,

and suggest useful idea) at pre-ODI and post-ODI

is presented in three table below comparison

Table: 1. Comparison between the Pre-ODI and Post-ODI of Transformational leadership



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between the pre and post-ODI of each variable.

Table 1shows the data of comparison between the

pre and post-ODI of transformational leadership.

The Table 1 summarizes each the data

collection from variables of transformational

leadership, the pre-ODI and post-ODI of organization.

All variables had improved after the ODI. The greatest

improvement in transformational leadership was

for Intellectual Stimulation (IS) as 15.19%, while

Inspirational Motivation (IM) prevention improved

the least as 10.92%.

The Table 2 summarizes, the greatest

improvement in employee engagement was for

commitment as 5.23% and Job satisfaction as

3.98%, while extra effort improved the least as

1.30%. On employee engagement, the greatest

improvement was for commitment while extra

effort improved the least.

The Tables 3 summarize employee creativity,

suggest useful Idea as 5.57%or new produce the

highest improvement and creativity self-efficacy

the lowest. On employee creativity, suggest useful

Idea has the highest improvement and creativity

self-efficacy has the lowest. During the six months

of interventions, the researcher observed that

those leaders who participated in the process were

more confident and known how to manage their

subordinates to encourage better performance

in enhancing employee engagement and greater

creativity in work and life.

There are two major parts relationship

in explaining after change of transformational

leadership. The first, it explores the overall dimensions

of employee engagement and employee creativity

that relate to transformational leadership and

secondly it discusses relationship on ideation level

and execution level.

Transformational leadership and its influence

on employee engagement and employee creativity

presented in the findings were revealing a positive

relation of employee engagement and employee

creativity to transformation leadership.

At the ideation level the p value is more than

0.05 in all dimensions(out of 6 dimensions) in both

employee engagement and employee creativity;

Job satisfaction, Extra effort, commitment, suggest

Table: 2. Comparison between the Pre-ODI and Post-ODI of Employee engagement

Table 3. Comparison between the Pre and Post-ODI of Employee Creativity



useful Idea, creativity self-efficacy, and solving more

problem, anyway the level of person correlation

is a positive level. Transformational leadership in

relation to employee engagementand employee

creativity

As can be seen from the descriptive statistics

of the correlation test shown in table 4, employee

engagement; job satisfaction (r = .458, p>0.05),

extra effort (r = .179, p >0.05), and commitment

(r = .577, p >0.05) have a significant relationship

with transformation leadership.

The r value correlations for employee

engagement in terms of job satisfaction, extra effort,

and commitment showed r value correlations of

• Job satisfaction r = 0.458 which indicates

that job satisfaction has “moderatecorrelation with

transformational leadership,

• Extra effort r = 0.179 which indicates

that extra effort has “very weak correlation” with

transformational leadership, and

• Customer treatment r = 0.577 which

indicates that customer treatment has “moderate

correlation” with transformational leadership,

This can be described that among three

dimension of employee engagement that were

used in this research, customer treatment has

positive correlation effect size to transformational

leadership.

As can be seen from the descriptive statistics

of the correlation test shown in Table 5, employee

creativity; suggest useful idea (r = .516, p>0.05),

creativity self-efficacy (r .780, p <0.05), and solving

more problem (r = .570, p >0.05), have a significant

relationship with employee creativity.

Table 4: Pearson Correlation Test between Transformational Leadership and Employee Engagement



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The r value correlations for employee

creativity in terms of suggest useful idea, creativity

self-efficacy, and solving more problems:

• suggest useful idea r = 0.516 which indicates

that suggest useful idea has “moderate correlation”

with transformational leadership,

• Creativity self-efficacy r = 0.780 which

indicates that creativity self-efficacy has “strong


• solving more problem r = 0.570 which

indicates that solving more problem has “moderate


This can be described that among three

dimensions of suggest useful idea, creativity

self-efficacy, and solving more problems has positive

correlation effect size to transformational leadership.

conclusionBased on the findings from hypothesis testing,

the conclusions were drawn as follows

Hypothesis1: Accepted Ha: There is a

significant difference between pre-ODI and

post-ODI on transformational leadership. Research

findings reveal that transformational leadership was

significantly improved after ODI implementation.

After implemented OD interventions, transformation-

al leadership shows overall statistical improvement

of 13.27%, with its improved behavior of Intellectual

Stimulation (IS), Idealized Influence (II), Individualized

Consideration (IC) and Inspirational Motivation

(IM) at 15.19%, 14.10%, 13.48% and 10.92%

respectively.

These stat ist ical improvements are

consistently supported by the researcher’s

observation during OD interventions. And by

interviews to participants after OD interventions

was completely implemented.

Hypothesis2:

Accepted Ha: There is a significant difference

between pre-ODI and post-ODI on employee

Table 5: Pearson Correlation Test between Transformational Leadership and Employee Creativity



engagement. Research findings showed that

employee engagement was significantly improved

after ODI implementation. After implemented OD

interventions, employee engagement showed

overall statistical improvement of 3.18%, with its

improved components of job satisfaction (3.98%),

extra effort (1.30%) and commitment (5.23%)

respectively. Consistently to qualitative study, the

subordinates feel more committed to their work

and enjoy going to the college:


significant difference between pre-ODI and post-ODI

on employee creativity.Research findings showed

that employee creativity was significantly improved

after ODI implementation. After implemented OD

interventions, employee creativity show overall

statistical improvement of 3.66%, with its improved

components of suggests useful Idea (5.57%),

creativity self-Efficacy (2.59%) and solving more

Problems (3.19%) respectively.

Consistently to qualitative study, the

subordinates evidently approach problems with

new and practical ideas in order to get problem

solved.


significant relationship between transformational

leadership and employee engagement. The finding

of the study also confirmed that transformational

leadership has a positive association with

subordinates’ engagement. The correlation

coefficient (r) is to 0.624, which signifies that there

is a positive correlation between transformational

leadership and employee engagement and

Hypothesis5:

Accepted Ha: There is a significant relationship

between transformational leadership and employee

creative. The finding of the study also confirmed

that transformational leadership has a positive

association with subordinates’ creativity. The

correlation coefficient (r) is to 0.918, which signifies

that there is a positive correlation between

transformational leadership and employee

creativity. In conclusion, the leaders showed

their abilities to encourage their subordinates to

be innovative and creative on their responsible

work. They apparently act as subordinates’ role

models via “leading by example”, they consistently

promote strong commitment to team/department’s

goal aligning to focal college’s. Regarding individual

team members, they sincerely pay attention on

subordinates’ needs. They are obviously a mentor

or coach rather than a boss or manager. They

foster the professional development and personal

growth of subordinates. Taking into action, leaders

are very supportive to subordinates’ successes via

motivation. This means, to inspire subordinates to

be even greater extent than they can be.

RecommendationThis research was carried out in a limited

of time and with a group of the top and middle

leaders in the organization, to ascertain the impact

of the ODI on transformational leadership to

enhance employee engagement and employee

creativity. The focal organization is a mid-sized

of high-level education business; hence it would

be beneficial to apply the same ODI with all

the leaders among either mid-sized or big-sized

education businesses as a family business. Since

this research is initiated the case study on mid-sized

education as family businesses, so some suitable

guidelines are already stated for those families who

also run the education business. It is no need to

be only the high-level education, but standard or



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technical level of education that interested could

also conduct the same ODI.

In addition, other business types can

consider duplicating this model and design test that

demonstrated in this research. Based on further

analysis and findings in this research, transformational

leadership has been improved even though this

cannot be claimed as a direct impact of the ODI.

However, further research should focus the

opportunity to enhance this study in relation to

employee engagement and employee creativity

which could be beneficial to other organizations,

especially education providers or education-related

servicesectors.

Future studies might be conducted in relation

to this topic utilizing all number of the leaders

in the organization to ensure whether there is a

relationship between the ODI and transformational

leadership to enhance employee engagement and


The limitation of this study is that it was

conducted within the family education business

under a certain period of time. However, effective

quantitative research is recommended to provide

deeper understanding in the change of behav-

ior resulted from transformational leadership

which leading to the enhancement of employee

engagement and employee creativity. Moreover,

researcher would suggest digging deep in the

relationship between transformational leaderships

that enhances the employee creativity towards

the environment of education business as family

business.

acknowledgements The journey to complete this dissertation

is a challenge. This reasearch could not have

been possible without the coaching and assisting

of mentoring of Dr. PerlaRizalina M. Tayko former

Ph.D.OD Program/Institute Director. Her guidance

and support was always helpful throughout every

step of this academic research. I am also thankful to

Dr. Salvacion Villavicencio professor/adviser for her

advice and support. I am also grateful to my family

especially my father and my mother for always

strengthened me in their way. Another grateful goes

to Assistance professor JatupornSungkhawan which

gave me the chance to go through my Ph.D.OD

degree and be my key man of intervention work

shop of transformational leadership. He inspired

me in the life long journey in the Organization

Development field and change.



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